To provide a select group of investors with the opportunity to participate as a ‘passive investor’ in property sites with redevelopment potential.
We are in a position to structure a variety of investment programs however traditionally we use an independent financial entity or Joint Venture.
Typically Citinova will identify a site suitable for redevelopment. Once the site has been sourced it will be put under a conditional contract in order to allow us to undertake a thorough and exhaustive due diligence in determining the viability of the proposed project.
Once Citinova is satisfied the site is suitable for redevelopment and can demonstrate target financial returns; an information memorandum is prepared by Citinova outlining the project inclusive of feasibilities, proposed risks and returns, marketability, corporate structure together with finance and capital requirement.
This document is not distributed publicly but to a select group of sophisticated investors with whom Citinova have a long-standing and successful relationships with on past and current projects.
The directors of Citinova will always have an equity interest in each project alongside their investor clients. The director’s interest in each project is flexible depending upon the amount of equity required or available for the project.
At the conclusion of each development, the property will be retained for a minimum period of five years. The Property may be refinanced with a partial or full return of capital.
Benefits of entering into an investment program with Citinova may include:
- Access to high quality, high yielding property development sites that meet Citinova investment criteria
- Leverage off the knowledge capital of Citinova’s key personnel in respect of property development
- Tax effective structures
- Capital invested is secured against the development site
- Detailed project and financial reporting as a stakeholder who is part of the development
- Investors will be able to participate in the high returns of property development whilst being a passive investor.